Consequences of non-compliance with the Transfer Pricing Declaration

Fines and Financial Penalties 

• According to the provisions of the Tax Code, taxpayers who fail to file the information return may be sanctioned with fines that vary depending on the severity of the non-compliance. 

• Penalties may apply for late filing, omission of information or errors in the declaration. 

Fiscal Adjustments by the Tax Administration 

• If it is detected that transactions with related parties do not reflect market prices, the Tax Administration may make tax adjustments, increasing the taxpayer's tax base. 

• These adjustments may result in an increase in tax payments and generate interest on late payments. 

Tax Audit and Supervision 

• Failure to file a tax return or inconsistencies in the information may lead to tax audits to verify compliance with the principle of free competition. 

• Audits may result in additional penalties if irregularities are detected in transactions between related parties. 

Disqualification for Tax Benefits 

• Companies that do not comply with the regulations could lose certain tax benefits, such as exemptions or deductions applicable to their operations. 

• Comply with the established deadlines : The information declaration must be submitted within three months after the close of the fiscal period. 

• Review information before submitting : Verify that the data provided is accurate and reflects actual transactions. 

• Correctly apply transfer pricing methods : Select and adequately document the method used in each transaction with related parties. 

• Seek professional advice : Relying on transfer pricing experts can help avoid unnecessary errors and penalties.